The Ramsey Show Highlights

Episode: "Dude, You Have No Money"
Date: October 11, 2025
Host: Dave Ramsey (with Financial Coach/Guest)
Podcast Network: Ramsey Network

Episode Overview

In this episode, a listener calls Dave Ramsey for advice on whether he should cash out his Roth TSP (Thrift Savings Plan) and use all $140,000 of it to build a small, debt-free cabin. The caller outlines his limited savings and retirement situation, prompting Dave and the co-host to dig deeper into financial realities, the allure—and dangers—of pursuing something you "really want" before you can afford it. The conversation is a candid and memorable exploration of responsible financial decision-making, investing myths, and the importance of listening to wise counsel.

Key Discussion Points & Insights

Should I Cash in My Roth TSP to Build a Cabin?

[00:06–01:08]

• Caller: Nearing age 59½ (eligible to withdraw from his Roth TSP without penalty), wants to use ~$140,000 to build a small cabin, and wonders if it’s better to pull the cash or borrow for the build, considering compound interest.
• Dave Ramsey quickly corrects the caller’s misunderstanding of compound interest:

  "Honey, that's not how compound interest works..." ([01:08])

• The caller has little additional savings: about $8,000 personally, 4-5k for his wife, and 4-5k in a household account.

Raw Financial Reality Check

[01:50–03:31]

• Dave: Points out the risk:

  "And you’re going to be broke." ([01:51])

• Caller clarifies he isn’t retiring immediately, but Dave remains skeptical, stressing that without investments, he’s setting himself up for financial hardship.
• Dave repeats:

  "Dude, you have no money and a cabin." ([03:22])

The Emotional Angle vs. Financial Wisdom

[03:35–03:48; 04:13–04:36]

• Caller laments that waiting until he's 70 to build won't let him fully enjoy the cabin; Dave jokes:

  "Well, you won't have to eat the logs." ([03:48])

• Dave pierces through the justification, empathizing but staying firm:

  "You've wanted a cabin a long, long time and you haven't saved up enough money to buy a cabin." ([04:17])

Tough Love: Why Wanting Isn’t Enough

[04:54–05:59]

• Dave draws a humorous but powerful parallel:

  "It's like calling me up and going, Dave, I want to buy a $2 million yacht... Well, you don’t have the money." ([05:24])

• He cautions that spending all savings to get the cabin now will leave the caller "living on social insecurity, broke with a cabin." ([05:38])
• Dave makes it clear:

  "I'm duty bound to tell you the truth because I care about you." ([05:58])

Denial and Borrowing: The Psychological Trap

[06:19–07:42]

• Dave and guest discuss why people rationalize borrowing for things they can’t afford:

  "When you borrow money ... it allows you to be in denial. Yes, you're participating in denial when you borrow money because you’re not admitting that you don't have the money." ([06:41])

Wise Counsel and Lasting Regrets

[07:10–07:49]

• The guest stresses that finding justification is easy if you want something badly:

  "If you really want a cabin, you’re going to figure out a way that this somehow makes sense to you. Which is why it's good to have wise counsel. But wise counsel doesn't do you any good if you don't listen to wise counsel." ([07:14])

• The guest, with personal resonance, says:

  "By the way, I really, really want a hunting place with a big cabin on it. I just don't have the money for it right now..." ([07:44])

Classic Dave Ramsey Wisdom

[08:01]

• Dave wraps up with a proverb:

  "The wise sees trouble and takes refuge. The simple moves forward anyway and is punished for it." ([08:01])

Notable Quotes & Memorable Moments

• Dave Ramsey (01:08):

  "Honey, that's not how compound interest works."

• Dave Ramsey (01:54):

  "You can't take your money out of a 401k unless you don't work there anymore."

• Dave Ramsey (03:22):

  "Dude, you have no money and a cabin."

• Dave Ramsey (03:48):

  "Well, you won’t have to eat the logs."

• Dave Ramsey (05:24):

  "It's like call me up and going, Dave, I want to buy a $2 million yacht and I've always wanted one. Well, you don’t have the money."

• Financial Coach/Guest (07:14):

  "If you really want a cabin, you’re going to figure out a way that this somehow makes sense to you. ... Wise counsel doesn't do you any good if you don't listen to wise counsel."

• Dave Ramsey (08:01):

  "The wise sees trouble and takes refuge. The simple moves forward anyway and is punished for it."

Important Segment Timestamps

• 01:08 – Dave debunks the caller’s compound interest theory
• 03:22 – "Dude, you have no money and a cabin."
• 05:24 – The $2 million yacht analogy
• 06:41 – On denial and borrowing money
• 07:14 – Wise counsel and personal anecdotes
• 08:01 – Closing proverb, classic Ramsey wrap-up

Tone & Style

This episode showcases the trademark Ramsey blend of empathy, tough love, and practical wisdom. Dave’s directness is punctuated with humor and relatable analogies, while the guest brings heartfelt anecdotes and a strong voice for caution and counseling.

Final Takeaway

Dave and the guest reinforce a vital message: just because you "really want" something doesn’t mean you can (or should) buy it—especially when it jeopardizes your financial security. Borrowing or cashing out investments for big wants is denial, not strategy. Seek wise counsel, take refuge from avoidable risks, and remember: spenders who ignore sound advice will face hard lessons down the road.